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Psychology

Recency

Recent events are weighted more heavily than their frequency warrants. It is why risk feels lowest after a long calm period and highest after a decline.

Foundations3 min read
Psychology

Herding

Following what others are doing. It is frequently rational for the individual and produces outcomes that are collectively poor.

Foundations3 min read
Psychology

Overconfidence

Estimates that are too precise and abilities that are rated too highly. It shows up in trading as too much activity and too little diversification.

Foundations3 min read
Psychology

Regret Aversion

Avoiding decisions that could produce regret, which biases toward inaction and toward doing what everyone else did.

Foundations3 min read
Accounts

Account Types

The account a security is held in changes what can be done with it, how it is taxed and who has a claim on it. It is a structural decision, not an administrative one.

Foundations5 min read
Accounts

Cash and Margin Accounts

A margin account borrows against the securities in it. That changes settlement, enables short selling, and introduces a lender with the right to close positions.

Foundations4 min read
Accounts

Buying Power

The number a platform shows as available is a calculation with several inputs, and it is not the same as the money in the account.

Foundations4 min read
Accounts

SIPC, FDIC and What Is Actually Protected

Account protection covers the failure of the firm holding your assets. It has never covered the possibility that an investment loses money.

Foundations4 min read
Accounts

Checking a Broker Before Sending Money

Registration, disciplinary history and custody arrangements are all public and take a few minutes to check. Almost every large fraud fails at the first of them.

Foundations4 min read
Accounts

Reading a Brokerage Statement

A statement reconciles a period. The sections that get skipped are the ones that reveal costs, corporate actions and errors.

Foundations4 min read
Accounts

Transferring an Account

Moving positions between firms is a standardised process that preserves holdings and cost basis. Selling and rebuying is a different thing entirely.

Foundations4 min read
Accounts

Fractional Shares

A fraction of a share is a position held by the broker on your behalf. It behaves like a share in most respects and differs in several that matter.

Foundations4 min read
Accounts

Dividend Reinvestment

Automatic reinvestment buys more of the same security with each distribution. It compounds, and it makes every distribution a purchase with tax and record-keeping consequences.

Foundations4 min read
Accounts

Trade Confirmations

A confirmation is the legal record of a transaction and it carries disclosures that appear nowhere else, including how your broker acted and what it was paid.

Foundations4 min read
Fixed Income

Money Market Funds

Funds holding very short-term debt, designed to maintain a stable value. They are not deposits, they are not insured, and the distinction has mattered twice.

Foundations4 min read
Crypto

What a Blockchain Is

A ledger maintained by many parties at once, where entries are appended in batches and the ordering is agreed by a mechanism rather than by an institution.

Foundations4 min read
Crypto

Custody and Keys

Whoever controls the private key controls the asset. There is no institution positioned to reverse a transfer, restore access or adjudicate a dispute.

Foundations4 min read
Portfolio

Asset Allocation

The split between asset classes is the decision that determines most of a portfolio's variability. It is also the one made least often and reviewed least carefully.

Foundations4 min read
Portfolio

Rebalancing

Left alone, a portfolio drifts toward whatever has performed best. Rebalancing restores the intended weights, which means selling what has risen.

Foundations3 min read
Portfolio

Dollar-Cost Averaging

Investing a fixed amount at regular intervals. It is two different things depending on whether it describes ongoing contributions or the deployment of a lump sum.

Foundations4 min read
Portfolio

Horizon and Risk Tolerance

Two different constraints that are frequently treated as one. Horizon is a fact about when the money is needed; tolerance is a fact about what will actually be held through.

Foundations4 min read
Taxes

Capital Gains, Short and Long

A realised gain is taxed at a rate that depends on how long the position was held. The boundary is one year, and it is frequently the largest single cost in a short-horizon method.

Foundations3 min read
Taxes

Qualified and Ordinary Dividends

Dividends are taxed at two different rate structures, and which one applies depends on the payer and on how long the shares were held around the ex-date.

Foundations4 min read
Taxes

Tax-Advantaged Accounts

The two structures defer tax at different ends. Which is preferable depends on rates now against rates later, which nobody knows.

Foundations4 min read
Protection

Who Regulates What

Several bodies oversee different parts of the market, and knowing which one covers a firm determines both what rules apply and where a complaint goes.

Foundations4 min read
Protection

Checking a Firm or an Individual

Registration status, employment history and disciplinary record are public and free. The check takes a few minutes and is the single highest-value habit in this subject.

Foundations4 min read
Protection

The Recurring Warning Signs

Investment fraud is not endlessly creative. The same small set of features appears across cases separated by decades, which is what makes a checklist useful.

Foundations4 min read
Protection

Ponzi Structures

A structure that pays existing participants from incoming money rather than from returns. It has a fixed arithmetic and a fixed ending, and both are visible from outside.

Foundations4 min read
Protection

Affinity Fraud

Fraud that spreads through a community rather than through advertising. The shared affiliation does the work that due diligence would otherwise do.

Foundations4 min read
Protection

Unsolicited Offers and Cold Approaches

An approach you did not initiate is a category with its own base rate. The forms change constantly and the structure underneath does not.

Foundations4 min read
Protection

Elder Financial Exploitation

A category with its own rules, its own reporting channels and its own protective mechanisms, including the ability for a firm to place a temporary hold.

Foundations3 min read
The Platform

Charting: The Chart Analyzer

A chart with the company's research attached to it. The per-symbol view pairs price with company, technicals, events, ownership and filings in one place.

Foundations4 min read
The Platform

The Heatmap and the 9-Box

The whole index on one screen, sized by weight and coloured by move. It answers breadth questions faster than any list can.

Foundations4 min read
The Platform

The Market Dashboard

The board that answers what is happening right now: indices, movers, breadth screens, macro, news and the heatmap in one view.

Foundations4 min read
The PlatformTools

The Watchlist and the News Desk

Watchlists define what you follow; the news desk is the wire filtered by it. Together they are the daily surface.

Foundations4 min read
The PlatformAlerts

Reading a Premium Alert

What an alert contains, what each part means, and the compliance frame that governs all of it: this is educational analysis, not a recommendation.

Foundations4 min read
The Platform

Real Time and Delayed on Your Plan

Which surfaces run on real-time data and which run delayed depends on the products held. This is what the delay affects and what it does not.

Foundations4 min read
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